Initial public offerings (IPOs) are among the most watched events in stock markets, and rightly so. They bring new blood into the market body in the form of new stocks for investors to trade in. IPO procedures keep markets fresh and inject new capital into companies from every sector.
Take advantage of TipRanks Premium at 50% off! Unleash powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The last quarter, 3Q25, showed a jump in IPO activity. The quarter saw the highest number of IPOs since 2021 and the most $100 million deals — a total of 23 — since the same year. In total, there were 60 IPOs in Q3 2025, raising a total of $14.6 billion – a strong jump from the $2.4 billion raised in Q3 2024.
Equity analysts at Goldman Sachs have been monitoring recent IPOs, watching to see how they measure up in the early days of public trading. We have used it TipRanks database Let’s look behind the scenes at two of these new IPO stocks, and we reached out to Goldman analysts to find out which stock they’ve picked as the best stock to buy. Here are the details.
Klarna Group(clear)
The first stock on our radar here is Klarna Group, a Sweden-based technology company with a global footprint. Klarna’s focus is on online financial services and e-commerce payment processing. The company manages store claims and customer payments, and specializes in providing “buy now, pay later” services to customers.
Klarna currently has around 111 million customers on its roster, taking advantage of the company’s payment services to shop online. On the business side, Klarna has 790,000 businesses using the service. The combined customer and merchant user base spans 26 countries – and the company handles a total merchandise volume of $112 billion. Among the brands that utilize Klarna’s services are major names such as Spotify, Samsung, Ralph Lauren, Airbnb and Ikea.
Looking at the company’s IPO, Klarna shares began trading on the New York Stock Exchange on September 10. The initial price was set at $40 per common share, a figure $4 above the middle of the originally estimated range. The Company’s offerings totaled 34,311,274 ordinary shares, of which 29,311,274 were placed on the market by “certain selling shareholders” and 5,000,000 shares were offered for sale by Klarna.
Klarna stock opened for trading at $52 per share, and the company’s IPO raised a total of $1.37 billion for the company and the selling shareholders. Klarna raised $222 million in shares it put on the market. Today, roughly a month after its IPO, Klarna boasts a market cap of nearly $15 billion.
For Goldman analyst Will Nance, this new public stock provides a sound path for investors to buy into the online financial services sector.
“We view Klarna as a market leader in buy now, pay later (BNPL) solutions, with a particularly strong franchise in Europe, where we believe Klarna is a new and emerging closed-loop payment plan, similar to American Express in the US… While we acknowledge the cyclicality of the consumer finance end-market, and currently favorable market conditions, during the cycle, we see Klarna As a consistent stock gainer over time, benefiting from 1) stake shifts to the BNPL category, 2) network effects, especially in Europe, and 3) further geographic expansion.
For Nance, this adds to his Buy rating on KLAR. His price target is $55 for a 12-month gain of ~42%. (To view Nance’s track record, Click here)
From the Street as a whole, KLAR stock gets a Strong Buy rating, based on 14 recent reviews that favor buys over holds by a margin of 11 to 3. The stock is currently trading for $38.79, and the average price target of $50.46 suggests a 1-year upside potential of 30%. (See KLAR stock forecast)
Gemini space station(boat)
The next stock we’ll look at here is Gemini, which is another technology company. Gemini gives its clients an online presence encryption Trading application and web wallet. The company is a registered cryptocurrency exchange and wallet that positions itself as a link between the more traditional financial services sector and the fast-growing financial services sector. Cryptocurrency economy. Gemini provides an opportunity for both institutions and individuals to step into the decentralized future centered around cryptocurrencies, where they can benefit from open, fair and secure financial services options.
The Gemini app is designed for mobile use and is available on both iOS and Android devices. The company boasts multiple regulatory registrations, including ISO 27001 and PCI DSS, which speak to the quality and security of its Information Security Management System and the safety and security of the Gemini Credit Card. This brings us to the company’s main consumer feature – a credit card linked to the user’s cryptocurrency trading account.
The Gemini Credit Card is offered with no annual fee and a “crypto back” bonus of up to 4% on every purchase. the Bitcoin The rewards offered on the card are a real investment opportunity – unlike the point rewards offered by other cards, Bitcoin will rise over time, and Gemini boasts that its Bitcoin rewards, which are held for at least one year, have increased by 277%.
This is the background of this company – a foundation in sound financial services designed to give users access to the esoteric cryptocurrency market. The company has been offering these services since 2014 and went public in September this year.
In its initial public offering, Gemini stock began trading on September 12. The offering was for a total of 15,937,501 shares of Class A common stock and included, with the underwriters’ over-allotment option, 300,565 shares sold by Gemini and 458,364 shares sold by the selling stockholders. Gemini did not receive the proceeds from the shares sold by the selling shareholders. The stock was priced at $28 per share, and the IPO raised more than $446 million in gross proceeds. Since this event, the stock has fallen 30%, and Gemini’s market cap now stands at just over $3 billion.
This cryptocurrency exchange has caught the attention of James Yarrow. The 5-star analyst, covering GEMI for Goldman, takes a cautious approach here and lays out reasons why investors should be cautious. He says about stocks
“Despite constructive growth expectations, lack of profitability and cyclical and competitive issues keep us on the sidelines. GEMI faces cyclical risks, in terms of: 1) An uncertain path to profitability, as we expect positive EBITDA only in 2028E. 2) In addition, the rapid growth of the credit card business presents risks Credit and interest rates in an economic downturn. 3) While regulatory reform could increase cryptocurrency TAM, it could also enhance competition between various financial services. This could put pressure on GEMI’s market share and prices over time.
These comments are accompanied by a Neutral (i.e. Hold) rating, and Yaro’s $25 price target indicates a 7% upside for next year; The stock is currently priced at $23.30. (To view Yarrow’s track record, Click here)
Turning now to the rest of the street, we find that opinions are almost equally divided. 6 Buys and 5 Holds add up to a Moderate Buy consensus rating. At $31.64, the average price target brings the upside potential to approximately 36%. (See Jimmy stock forecast)
With the facts and statistics highlighted about KLAR and GEMI, it’s clear that Goldman Sachs sees Klarna as a better stock to buy after its recent IPO.
To find good ideas for trading stocks at attractive valuations, visit TipRanks Best stocks to buya tool that unifies all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
